As a result of Gulf of Mexico shrimp processors petitions, the U.S. Department of Commerce on Friday announced that it is formally initiating an investigation into subsidized imports of shrimp from China, Ecuador, India, Indonesia, Malaysia, Thailand and Vietnam. So, after several weeks of assessing the information provided by the Coalition of Gulf Shrimp Industries and other groups, the federal government has determined there is sufficient evidence to look deeper into various frozen warmwater shrimp subsidies.

"We commend the Department of Commerce for initiating these seven investigations," David Veal, the coalition's executive director, said on Friday. "Today's determination to initiate is the first step in a process over the next nine months to obtain the relief so desperately needed by our members and by the entire domestic shrimp industry."

The investigation could lead to the imposition of "countervailing duties," duties imposed to offset subsidies on shrimp by foreign governments. The Coalition of Gulf Shrimp Industries filed petitions on Dec. 28 seeking relief from the subsidized shrimp imports.

The U.S. International Trade Commission will partner with Commerce in examining the alleged subsidies from 2011. During Commerce's initial assessment over the past few weeks, the agency found there was sufficient evidence to initiate investigations into 117 of the 133 subsidy programs alleged in the coalition's petitions.

The products covered by the investigations are frozen warmwater shrimp and prawns packed with marinade, spices or sauce, Commerce announced Friday. Breaded, coldwater and fresh shrimp, along with various other types of shrimp, will not be included in the investigation.

Thailand exported the most shrimp to the U.S. in 2011 - shrimp valued at about $1.4 billion. Ecuador and Indonesia came in second and third, exporting shrimp to the U.S. worth about $512 million and $493 million respectively, according to Commerce.

In 2011, total shrimp exports from China, Ecuador, India, Indonesia, Malaysia, Thailand, and Vietnam were valued at about $4.2 billion, according Commerce.

"The petitioner contends that the industry's injured condition is illustrated by reduced market share; underselling and price depression or suppression; lost sales and revenue; reduced shipments and production; increased inventories; decline in financial performance; and reduction in employment data and wages paid," according to the notice that Commerce released Friday indicating it is moving forward in its investigation.

"We have assessed the allegations and supporting evidence regarding material injury, threat of material injury, and causation, and we have determined that these allegations are properly supported by adequate evidence and meet the statutory requirements," that federal notice continues.

Last Friday, Jan. 11, the Ad Hoc Shrimp Industry Committee, a legal group formed by the Southern Shrimp Alliance, filed a request to participate in the investigation into the alleged subsidies. And on Monday, it was named a party to the investigation.

But the Southern Shrimp Alliance top brass have indicated that they have felt excluded from the process and fear that the coalition does not have shrimpers' best interests at heart. The alliance has pointed out that the coalition is predominately made up of processors, and that the coalition has requested that domestic shrimpers be excluded from injury analysis because the coalition has maintained it would "impose a unique, unnecessary, and unwarranted burden."

"Although the individual members of the Ad Hoc Shrimp Industry Committee have different views on the merits of trade relief, the Committee as a whole has taken no position either in support or opposition to (the coalition's) request for countervailing duties," according to a statement made on Friday by the Southern Shrimp Alliance. "The Committee will advocate for a domestic industry definition that accurately reflects the broad diversity of the U.S. shrimp industry."

"In the meantime, the Southern Shrimp Alliance encourages all within the shrimp industry to become involved in the trade case," the statement concluded.

Meanwhile, Coalition of Gulf Shrimp Industries members continue to talk in broad strokes about the coalition's goals, saying countervailing duties would benefit the entire domestic industry.

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"We continue to believe that the long-term survival of the entire Gulf shrimp community is at stake with this case," Eddy Hayes, the coalition's attorney, said on Friday after Commerce's announcement.

Between Jan. 10 and this past Wednesday, Jan. 16, Commerce held talks with representatives of the targeted governments and various exporters. During those talks, many of the targeted foreign entities questioned whether the petitions to start the investigation against them had enough support from the U.S. domestic shrimp industry, according to Commerce.

But Commerce investigated the matter and determined "that the (coalition) has met the statutory criteria for industry support," which is at least 25 percent of the local industry allegedly affected by the specific subsidies.

The International Trade Commission is partnering in the investigation, specifically determining whether the domestic shrimp industry has been materially injured, or has been threatened with material injury, due to the subsidized imports.

It is scheduled to make its preliminary injury determinations on or before February 11 and if it determines that there is a reasonable indication that imports resulted in material injury to the domestic shrimp industry, or threatened to, then investigations will continue.

Commerce is responsible for determining whether the foreign government did in fact provide the subsidies to foreign shrimpers and exporters. If the International Trade Commission gives the go ahead to continue, then Commerce will be scheduled to make its preliminary determinations by March 25.

Commerce could make a final determination by June 6 and the International Trade Commission could makes its final determination by July 22. Any orders would be issued by July 29, although extensions throughout the process can occur.